Brent futures for June settled down $2.73, or 3%, at $87.29 a barrel, while U.S. crude futures for May settled down $2.67 or 3.1% at $82.69 a barrel, their biggest decline since March 20
Oil prices settled down 3% on Wednesday, pressured by an increase in U.S. commercial inventories, weaker economic data from China and U.S. progress on Ukraine and Israel aid bills.
Brent futures for June settled down $2.73, or 3%, at $87.29 a barrel, while U.S. crude futures for May settled down $2.67 or 3.1% at $82.69 a barrel, their biggest decline since March 20.
Oil prices have weakened this week as economic headwinds curb gains from geopolitical tensions, with markets eying how Israel might respond to Iran’s weekend attack.
Analysts do not expect Iran’s strike on Israel to prompt dramatic U.S. sanctions on Iran’s oil exports.
U.S. crude inventories increased by 2.7 million barrels to 460 million barrels last week, government data showed.
Oil prices continued to drop after U.S. House of Representatives Speaker Mike Johnson said the text of four bills providing assistance to Ukraine, Israel and the Indo-Pacific would be filed “soon today,” with a fourth with “other measures to confront Russia, China and Iran” posted later in the day.
The market was waiting to sell off on indications of calming of tensions in the Middle East, progress on these bills and a three-day delay in Israel’s response to Iran is helping today, according to John Kilduff, partner at Again Capital LLC in New York.
Top Fed officials including Chair Jerome Powell backed away on Tuesday from providing any guidance on when interest rates may be reduced, dashing investors’ hopes for meaningful cuts in borrowing costs this year.
A strengthening trend in the US dollar and the ability of crude stocks to increase in the face of reduced Mexican imports and rising SPR refills are also sending off some bearish vibes, according to Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois.
